Question: * #@ 1 . DCF Ltd . purchased an asset on January 1 , 1 9 A . The asset will have cash flows of

*#@1. DCF Ltd. purchased an asset on January 1,19A. The asset will have cash flows of
$40,$70, and $10 at the end of 19A,19B, and 19C. The price DCF paid for the asset was
equal to its present value. No other cash flows will be realized by the firm from this asset.
Using the DCF accounting model, and assuming DCF typically realizes a 10% return on its
assets, give the depreciation charge DCF will report in 19A.
 *#@1. DCF Ltd. purchased an asset on January 1,19A. The asset

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